Multilevel marketing (MLM) is a strategy used by direct sales companies to sell products and services.
Existing members are encouraged to promote and sell the offerings to others and bring in new recruits.
MLM participants earn a percentage of their recruits' sales and can earn more money as their network grows.
MLM is legal, but there are illegal pyramid schemes that give MLM a negative reputation.
MLM requires individuals with an entrepreneurial spirit, good sales skills, and networking abilities.
It is important to differentiate between legitimate MLM companies and pyramid schemes by focusing on product sales rather than recruitment.
MLM can be difficult to earn money from without successful recruitment.
It is important to be cautious of MLM promoters who make extraordinary claims and pressure individuals to join without learning more about the company.
The main difference is that MLM focuses on sales, while pyramid schemes focus on recruitment.